3 White Lies that Lenders are Looking for on Mortgage Applications

With lenders being notoriously stingy these days when it comes to lending money, more and more potential borrowers are feeling the temptation to tell a few “little white lies” on their mortgage applications in hopes of pushing into the coveted “approved” territory. However, warns the Chicago Tribune, lenders are not only on the lookout for these “harmless” fabrications; they’re more than willing to accuse you of fraud. Here are three common “white lies” that can not only get your loan denied, but can also result in your coming up with a red flag on a fraud check:
The Income Bump
Exaggerate your income even a little and the IRS will soon get wind of the issue. Either they will disprove your claims to the lender or they’ll come knocking for their share of your unreported earnings. Either way, it’s a problem that you don’t want to deal with.
The Valuation Exaggeration
It can be tempting to “fudge” valuations for more or less than their real value, depending on what you are trying to accomplish. Either way, a fraudulent appraisal is nothing to turn a blind eye to, since lenders have elaborate systems in place to make sure that they are not being mislead about property values and they’re eager to make the people reporting these problem values pay.
The Lien Lie
Borrowers used to be able to gloss over or even avoid mentioning liens against them all together. In today’s age of electronic information, though, if you owe someone money, your lender will find out. You might as well let them know up front or resolve the debt in advance. Lying about liens can lead to the rejection of a mortgage application even if the lien is ultimately resolved.

What do you think about the extensive work that lenders are putting in to sniff out loan “fraud?” Do you think it is too much? Not enough?

*GOD Speed*
TLD Investments LLC
http://www.tldinvestmentproperties.com

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